Published: Friday, July 19, 2013 at 4:40 p.m.

Last Modified: Friday, July 19, 2013 at 4:40 p.m.

So what does civil unrest half a world away in Egypt have to do with the price of gas in Wilmington?

Facts

Gas prices

Gas prices, in this case for a gallon of regular unleaded, are creeping up, and experts say the full impact of rising oil prices has yet to be seen at the pump.Friday June 19 July 2012Wilmington $3.57 $3.46 $3.29North Carolina $3.55 $3.46 $3.31South Carolina $3.37 $3.26 $3.10National $3.67 $3.60 $3.44

Source: AAA

Quite a bit, apparently.

Although Egypt isn't a significant oil producer itself, the country is home to the Suez Canal.

"There was and still is some concern over the distribution of oil coming from the (Persian) Gulf and if that could be impacted," said Angela Daley, spokeswoman with AAA Carolinas. "The markets don't like that kind of uncertainty."

But unrest in Egypt isn't the only or potentially even the biggest factor impacting domestic gasoline prices, which have risen by nearly a dime a gallon in less than a month.

Add a strengthening U.S. economy – including a surging stock market – and the busy summer driving season and you have a recipe for rising prices at the pump.

And since it can take several weeks for oil price fluctuations to filter down to the corner gas station, the uptick in gas prices might still be accelerating. That's because oil pushed above $109 a barrel for a time on Friday, its highest level since March 2012.

Oil has jumped more than $11 a barrel in July – it was under $94 in mid-June – and gasoline futures have gained 13 percent since July 1, reports The Associated Press.

But how can oil – and consequently gasoline – prices be rising when U.S. oil production is booming thanks to new technologies?

According to some industry executives who were hauled before Congress this week, refinery shutdowns and government requirements about fuel blends aren't helping in efforts to moderate gas prices.

But the primary cause of rising oil prices is what it always is – market forces.

Ron Capone, an energy analyst based in Northern Virginia, said there are often several international and domestic factors pulling oil prices one way or another.

But when you get down to the basics, it's always a question of supply and demand – and where traders think the market is headed.

"A lot of it is market psychology," Capone said, noting that the markets often pile on once prices start to move one way or another.

But an even larger factor is likely the world market and the increasing demand for U.S. refined products in emerging markets.

"The producers are going to go where they can make the most money, and if that's overseas that's where they're going to go," Capone said.

But he also sees some hope on the horizon for frustrated motorists.

"Sooner or later all of the supply coming on stream is going to have a moderating effect on prices," Capone said, referring to the surge in North American oil production in places like the Dakotas and Alberta in Canada. "It absolutely has to."

AAA's Daley also sees prices stabilizing later this summer before beginning their annual swoon as the weather cools.

"With domestic production up and likely going to keep going up, that should help with a lot of the gasoline volatility we've seen in recent years," she said. "Either way, prices will start falling in October as demand tapers off."

But a few weeks, or even months, of higher gas prices isn't much comfort to some motorists who are sick of seeing the almost daily jumps in gas prices in recent weeks.

At the Hess station on Carolina Beach Road near Legion Stadium, Billy Richards was having a smoke and a soda after pumping $40 worth of gasoline into his SUV – and not even coming close to filling the tank.

"Earlier this year, there was some talk about $3 gas," he said, starting to shake his head. "Now some people are talking about $4 gas.

<p>So what does civil unrest half a world away in Egypt have to do with the price of gas in Wilmington?</p><p>Quite a bit, apparently.</p><p>Although Egypt isn't a significant oil producer itself, the country is home to the Suez Canal.</p><p>"There was and still is some concern over the distribution of oil coming from the (Persian) Gulf and if that could be impacted," said Angela Daley, spokeswoman with AAA Carolinas. "The markets don't like that kind of uncertainty."</p><p>But unrest in Egypt isn't the only or potentially even the biggest factor impacting domestic gasoline prices, which have risen by nearly a dime a gallon in less than a month.</p><p>Add a strengthening U.S. economy – including a surging stock market – and the busy summer driving season and you have a recipe for rising prices at the pump.</p><p>And since it can take several weeks for oil price fluctuations to filter down to the corner gas station, the uptick in gas prices might still be accelerating. That's because oil pushed above $109 a barrel for a time on Friday, its highest level since March 2012.</p><p>Oil has jumped more than $11 a barrel in July – it was under $94 in mid-June – and gasoline futures have gained 13 percent since July 1, reports The Associated Press.</p><p>But how can oil – and consequently gasoline – prices be rising when U.S. oil production is booming thanks to new technologies?</p><p>According to some industry executives who were hauled before Congress this week, refinery shutdowns and government requirements about fuel blends aren't helping in efforts to moderate gas prices.</p><p>But the primary cause of rising oil prices is what it always is – market forces.</p><p>Ron Capone, an energy analyst based in Northern Virginia, said there are often several international and domestic factors pulling oil prices one way or another.</p><p>But when you get down to the basics, it's always a question of supply and demand – and where traders think the market is headed.</p><p>"A lot of it is market psychology," Capone said, noting that the markets often pile on once prices start to move one way or another.</p><p>But an even larger factor is likely the world market and the increasing demand for U.S. refined products in emerging markets.</p><p>"The producers are going to go where they can make the most money, and if that's overseas that's where they're going to go," Capone said.</p><p>But he also sees some hope on the horizon for frustrated motorists.</p><p>"Sooner or later all of the supply coming on stream is going to have a moderating effect on prices," Capone said, referring to the surge in North American oil production in places like the Dakotas and Alberta in Canada. "It absolutely has to."</p><p>AAA's Daley also sees prices stabilizing later this summer before beginning their annual swoon as the weather cools.</p><p>"With domestic production up and likely going to keep going up, that should help with a lot of the gasoline volatility we've seen in recent years," she said. "Either way, prices will start falling in October as demand tapers off."</p><p>But a few weeks, or even months, of higher gas prices isn't much comfort to some motorists who are sick of seeing the almost daily jumps in gas prices in recent weeks.</p><p>At the Hess station on Carolina Beach Road near <a href="http://www.starnewsonline.com/section/topic9931"><b>Legion Stadium</b></a>, Billy Richards was having a smoke and a soda after pumping $40 worth of gasoline into his SUV – and not even coming close to filling the tank.</p><p>"Earlier this year, there was some talk about $3 gas," he said, starting to shake his head. "Now some people are talking about $4 gas.</p><p>"It's starting to get ridiculous again."</p><p><i></p><p><a href="http://www.starnewsonline.com/section/topic9924"><b>Gareth McGrath</b></a>: 343-2384</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @Gman2000</i></p>